IMF backs Brazilian plan, clearing way for big loan

By Compiled From Wire Service Dispatches With Analysis From Monitor Correspondents Around The World

Edited By Anne Collier

Rio de Janeiro

Brazil received International Monetary Fund endorsement of its 1983 austerity program, paving the way for formal approval of a $4.5 billion IMF loan to bail out the debt-ridden nation.

Despite reports Brazil might suspend payments on its $88 billion foreign debt , the world's largest, Planning Minister Antonio Delfim Netto emerged from a five-hour meeting with IMF officials saying Brazil will honor its commitments. The agreement is expected to clear the way for the government to request fresh loans from private banks. A meeting with Brazil's 40 most important creditors has been set for next Monday.

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